German chemical and pharmaceutical juggernaut Bayer AG is reducing its sales and profits forecasts for 2017 in the face of an unexpectedly high inventory level of its crop protection products in Brazil.

German chemical and pharmaceutical juggernaut Bayer AG is reducing its sales and profits forecasts for 2017 in the face of an unexpectedly high inventory level of its crop protection products in Brazil.

Bayer said on 30 June that it would cut its full-year EBITDA by €300M (US$342M) to €400M(US$455M), impacting its second quarter results.

Regular stocktaking revealed that Brazil had an unexpectedly high inventory level of crop protection products at the end of the harvest season, the company explained.

Brazilian traders have been particularly hard hit by drought in 2016 and a deep recession tightening credit conditions, according to a Bloomberg report.

Bayer said it was adjusting its full year sales and earnings forecast for its Crop Science and Consumer Health divisions.

“By contrast, the Pharmaceuticals Division and Covestro [plastics business] continue to perform strongly. The Animal Health business is performing in line with expectations.”

Bayer originally increased its outlook in April, citing a rebound in chemicals and crop products, Bloomberg wrote.

The bleaker outlook comes as Bayer moves forward with its US$66M takeover of global seed company and pesticide maker Monsanto.